As part of this overhaul, Pam Kaur has been appointed as the new Chief Financial Officer, starting January 1, 2025.

Analysts have noted that the reorganization aims to eliminate management layers, reduce costs, and improve productivity.

While some aspects of the plan were anticipated, the integration of business lines by sector and geography surprised analysts, who noted a lack of clear cost details.

Effective January 1, 2024, the new structure will include divisions for Hong Kong, the UK, Corporate and Institutional Banking, and International Wealth and Premier Banking.

The bank will operate with a 'Hong Kong' unit covering Asia-Pacific and the Middle East, and a 'UK' unit focused on Western markets, including retail and commercial banking.

Elhedery emphasized that the changes will allow HSBC to focus on competitive advantages and growth potential in core markets.

New CEO Georges Elhedery revealed that this restructuring will create specialized businesses with clear responsibilities, focusing on regional strengths.

The restructuring is designed to streamline decision-making processes and enhance customer service efficiency.

Concerns have been raised that this reorganization may precede potential withdrawals from retail banking in certain markets, such as Mexico.

The financial implications of these changes will be further clarified during HSBC's upcoming third-quarter results presentation on October 29.

HSBC has announced a significant reorganization, dividing its operations into four distinct divisions to better separate its Western and Asian markets.

This move comes amid rising geopolitical tensions, particularly between the West and China, and follows pressure from HSBC's major shareholder, Ping An, for a geographical split.